November 23, 2021. Lima, Peru.- The export sector is emerging as an engine for the reactivation of the Peruvian economy due to the dynamics registered so far this year, said the vice president of the Moody's Investors Service group, Jaime Reusche.
"There is an increase in the demand for Peruvian products, which should generate greater investment. Private sector companies are aware that when there is an increase in orders, capital must be increased to produce a good and offer it to the market," he told the official newspaper El Peruano.
He stressed that this investment cycle is always favorable also for the generation of greater economic activity in the country.
While business confidence is still somewhat battered, it is recovering mainly because of external demand that remains favorable, he said.
"That advantage generates many opportunities, which we must take advantage of before that momentum begins to fade, because it is very likely to slow down," he said.
The Central Reserve Bank (BCR) recently reported that, since March of this year, Peru has resumed the leadership of the growth of non-traditional exports among the main economies of the region and that as of September this situation continues.
In this regard, Reusche said that this is an excellent result. "What was surprising was the growth, not only compared to 2020, but also to 2019, before the pandemic, a year in which non-traditional exports increased significantly."
He stressed that this better performance is based on the progress of agro-exports.
"Since before the pandemic we knew that it had become a small engine of growth that complemented mining in boosting the national economy," he said.
In this sense, the executive stressed that one of the main advantages of the agro-export sector is that it exerts a great demand for labor, while mining is intensive in capital (investments).
"The agro-export sector is a source of formal employment generation that drives the economy. That is why its development must continue to be promoted," he said.
The vice president of the Moody's Investors Service group stressed that the reactivation of external demand benefits Peruvians with a greater purchase of our products.
"There is significant demand in the international market as a result of the monetary and fiscal stimuli implemented in advanced economies," he stressed.
He stressed that this situation generates a very good time to take advantage of by promoting the agro-industrial and agro-export sector.
Reusche explained that the better performance of non-traditional exports is also being favored by the trade integration policy implemented by the country in recent decades.
"It is the commercial opening that gives us the channels and mechanisms to be able to place the products in markets that we would not reach if we did not have this mechanism of openness and relationship with other countries," he emphasized.
Source: Press Release - Andina